of return will you accept? I don’t think I understand your question? Do you mean what kind of Interest rate you can charge? Are you saying that you own the property free and clear, or do you have a small amount of cash in the property, etc. The house deals I do are generally Infinite returns, why because I don’t have the money to put up, it comes from other sources, even rental property picked up. The MH deals are generally in the 100%+ range. I would expect that eventually I would want to slow down and the money that I acquire won’t have to work as hard. I guess as I expect it depends on the kind of returns you expect.
If it is just interest rate were talking about, that would depend on the buyer, down payment, risk etc.
Posted by Tom Moore on March 03, 1999 at 19:12:03:
I am selling residential rental property I own. I have calculated expected rate of returns for a variety of sale prices and down payments. The question is: what is the normal or good rate of return a buyer of rental property should expect on invested capital?
Re: Expected Rate of Return - Posted by John Behle
Posted by John Behle on March 09, 1999 at 18:54:39:
There really is no set rate of return for selling a single family home. What you should expect is based on many factors. I generally buy properties in an appreciating market or severely below market value. With 100% financing, the return is always infinite. You may want to post your question on the other newsgroup and see if there are any rules of thumb that may be helpful for you.